Sunny Weather Report Sunnyvale, United States Of America +19°C, Sunny

Scottish Independence and Keeping the Pound

Scottish Independence and Keeping the Pound

SCOTTISH INDEPENDENCE AND KEEPING THE POUND – It really doesn’t matter how the English or those in the European Union feel about the matter, for the choice of independence can only ever be decided by the people of Scotland.

It’s difficult to put aside nationalist feelings for we are generally all proud of our heritage, however would a nation go as far as economic ruin just to declare independence when it could never truly be independent?

We are of course talking about Scotland and its possible independence and whether the people of Scotland can afford to run a country without it being beholden to the British currency.

It is the intention now of Britain’s main political parties to draft a plan that will effectively force Scotland to reassess its possible independence as such would result in the UK refusing to form a current union with Scotland; effectively denying Scotland to keep the pound as its currency.

An independence referendum is due in September and it is now clear that ‘flag waving’ is beginning to wane as the Scottish people start to consider the financial consequence if a ‘Yes’ vote resulted in Scotland’s independence.

In a press conference on Tuesday David Cameron stated that the Chancellor George Osborne would reject a currency union.

Previously Alex Salmond suggested a currency union and without attempting to get into the politics of such the Bank of England Governor Mark Carey stated that such a suggestion would not be practical.

In many people’s views independence should mean exactly that and if the good people of Scotland surely want such then they must be prepared to stand on their own.  The issue is of course whether they can afford such.

It might appear from the outside that the British Government is simply attempting to erect barriers to force a ‘No’ vote but this really does come down to economics and we’ve already witnessed the true face of a monetary union with the eurozone crises.

Monetary union is utterly flawed without fiscal union and it is certain that Scotland as an independent nation would not be able to match England fiscally and therefore no currency union would derive any benefits other than potentially costing the taxpayer and the economy dearly.

If a monetary union were permitted then Scotland would in effect not have true independence for it would have to cede sovereignty to a degree in order to keep the pound; it doesn’t matter how you cut the cake a monetary union does not provide for an independent nation.

Scotland has a clear choice and one they are free to make; either claim independence or stay in the UK; for the only way the UK would agree to Scotland keeping the pound would be for them to remain part of the UK.

From the latest polls there certainly appears to be a division with approximately 35% seeking to remain as part of the UK, 25% who staunchly support independence and 35% in the middle who take the view that independence would be favourable providing there are no ramifications of damage to the Scottish economy.

What the people of Scotland decide is of course their choice but at present it is clear that if independence is sought and granted it will ultimately result in the UK cutting the purse strings to avoid being dragged into economic turmoil.

More on this issue… The Guardian

Bookmark and Share

Tags assigned to this article:
Scottish Independence